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Please solve these two questions. Thank you. (3). You will be receiving cash flows of: $1 ,000 todays $2,000 at end of year 1, $4,000
Please solve these two questions. Thank you.
(3). You will be receiving cash flows of: $1 ,000 todays $2,000 at end of year 1, $4,000 at end of year 3, and $6,000 at end of year 5. What is the present value of these cash flows at an interest rate of 7%? A. B. c. D. $9,731.13 $10,412.27 $10,524.08 $11,524.91 (4). If $ 120,000 is borrowed for a home mortgage, to be repaid at 9% interest over 30 years with monthly payments of $965.55, how much interest is paid over the life of the loan? A. $120,000 B. $162,000 c. $181,458 D. $227,598
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